GTA Real Estate Market March 2022 Summary
Almost 11,000 Home Sales in March 2022
As per the Toronto Regional Real Estate Board TRREB’s March 2022 Market Watch Report:
- There were 10,955 sales through the MLS® System in March 2022, representing a 30% decline compared to March 2021. However, condominium apartment transactions fell by a much lesser annual rate.
- New listings were also down on a year-over-year basis. This suggests that while market conditions remained very tight, home buyers did not experience the same level of competition from other buyers compared to a year earlier.
- The average selling price was up by 18.5% year-over-year. However, there were more condominium apartments sales in March which generally sell for a lower average price compared to other home types.
“Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments. However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year,” said TRREB Chief Market Analyst Jason Mercer.
What are the Current Average Home Prices?
|March 2022 Average Home Prices as per TRREB
Source: March 2022 TRREB GTA Market Watch
Other Key Market Conditions
The Bank of Canada has raised interest rates by half a percentage point – its biggest single move in more than two decades – and promised more increases to fight soaring inflation that is being driven in part by the war in Ukraine. This has an effect on the interest rate that banks charge the consumers. Subsequently banks have also increased their variable interest rates.
Higher interest rates make loans and mortgages more expensive. Homeowners in the real estate markets of the GTA, will now pay more on their regular mortgage payments. With an increase in interest rate, we will see a drop in approval amounts for buyers which will push buyers of expensive homes into lower priced homes. This is a good thing that could stabilize our housing market.
Current Home Prices in Mississauga
Within the last one month, prices have softened as we have personally witnessed in Mississauga, Milton, Brampton, Oakville, Burlington and Hamilton markets. Detached homes which used to sell for $1.8M are now selling for around $1.7M. Semis which used to sell for $1.4M are now selling for $1.3M. Townhouses which were selling for $1M are now selling for $970K on an average. Same goes for condo apartments, 1 BR condo apartments in the Square One area, which had crossed $700K are now selling around $680K.
With more interest increases as indicated by the Bank of Canada, we can further see a softening of our housing market. It is a great news for first time buyers and other home buyers who were from last two years having a very hard time in competing against dozens of other buyers for every home. As more inventory comes into the market, these buyers will have more choices.
Other Important Real Estate News
The Government of Ontario has announced amendments to the Non-Resident Speculation Tax (NRST).
As of March 30, 2022, the NRST rate will be increased from 15% to 20% and will be expanded to all regions of the province. The NRST will continue to apply to individuals who are not Canadian citizens or permanent residents of Canada or by foreign corporations or taxable trustees. Visit the Government of Ontario’s NRST webpage for details regarding the transition provisions for the tax rate, the international student rebate, and the foreign workers rebate.